Groundbreaking Research Says Single Women Increasingly Choose
Their Unmarried Status
NEW YORK, July 12 /PRNewswire/ -- As the third millennium unfolds, it has given rise to a powerful new consumer: the liberated single female. According to a revealing new report from Young & Rubicam's Intelligence Factory, educated, professional single women are exercising serious purchasing power and social influence as we head into the 21st century. The Intelligence Factory will publish "The Single Female Consumer" as part of its Futurescope 2000 series in July. (An extended version will be available from Reuters Business Insights this summer.) The report details factors contributing to the prevalence of and newfound sense of empowerment among single women in modern societies. These include greater educational and career opportunities, longer life expectancy, delayed marriage -- or no marriage at all -- cohabitation, and higher divorce rates, all of which mean that women are more likely than ever to live alone at some point in their lives (and may do so more than once).
"This study represents the most comprehensive research ever conducted on the burgeoning single female market," says Marian Salzman, president of The Intelligence Factory. "The results make it clear that women living alone increasingly comprise the strongest consumer block -- in much the same way that Yuppies did in the 1980s. Marketers vying to reach this segment will need to understand what makes these women tick and how to appeal to their interests and ideologies."
Contrary to popular perceptions, the majority of single women are not young 20-somethings waiting to get married. Rather, there is a growing movement around the world toward marriage delay and avoidance. In the U.S., Europe, and Japan, the average age at which a woman marries is now the mid-to-late 20s. In the U.S., the number of women living alone has increased more than 33 percent in the past 15 years, to 30 million, and marriage rates are now at the lowest point in history. Similarly, in Japan, the percentage of women in their late 20s who are single has risen from 30 to 50 percent over the past 15 years. In the U.K., the number of first marriages is the lowest it's been this century. Meanwhile, in Scandinavia, marriage rates have dropped by more than half since the 1950s. And Australia's marriage rate is the lowest it has been in 100 years.
As societies slowly begin to assimilate this single lifestyle into the dominant culture, finding language that identifies this group and captures their new attitudes toward relationships will be essential for the success of marketing and advertising campaigns. Throughout modern societies worldwide, the distinctions between formal and informal relationships are gradually being blurred as cohabitation -- both premarital and as an alternative to marriage -- rises. This is a reflection of a new hybrid lifestyle, in which a woman can retain financial independence and many of the trappings of the single life by avoiding tying the knot, while importing a stable partner into the bargain. While an unmarried woman is not necessarily a single woman, a married woman, conversely, is not automatically subsumed into a traditional couple. As more and more women state their status as single, they are increasingly difficult to label, or categorize, making it that much more challenging for marketers who wish to appeal to them. The same consumer that is categorized as "never-married" may also be defined as "cohabiting," "lesbian," "single mother," and more.
A growing tendency for single women in modern nations is to have children out of wedlock. In the U.S., for example, nearly half of all babies born in 1998 were to single women, an all-time high. In Europe, 38 percent of all babies are born outside of marriage in England and Wales, and the figure rises to more than 50 percent in the Scandinavian countries. Although financial situations vary for single mothers overall, women purchase 80 percent of all consumer goods, and single mothers account for $174 billion in annual expenditures in the U.S. alone. Women who choose to have babies without marrying are a unique group, often spending from $12,000-$15,000 to become a mother through donor insemination or adoption. In fact, as many as 30 percent of people adopting Chinese babies nationwide, according to New Jersey-based Chinese Children Adoption International, are single women professionals in their late 30s or 40s.
Where and how single women choose to live has a dramatic impact on the marketplace. In the U.S., nearly 60 percent of single women own their own homes, and they are purchasing homes at a faster rate than are single men. Urban singles drive leisure and entertainment spending, while suburban women fuel the multibillion-dollar hardware and home renovation industry both in the U.S. and abroad. "How" a single woman chooses to live her life also has economic and social consequences; lesbians are an increasingly important, though understudied, niche market.
In the absence of life partners, it is important for single women to develop their own social networks. Increasingly, community and friendship -- rather than marriage or relatives -- are their most important ties. Combating the stereotype of the dour old spinster, solo women become involved in a wide range of activities and enjoy a full social life that includes going to the theater, restaurants, and the gym. In future, predicts The Intelligence Factory, the term "family" will cease to be limited to people tied to one another by blood or marriage and will be extended to include friends, pets, and even online virtual communities.
The rise in single women is having an impact in financial markets, as well. Women in the U.S. account for 50 percent of stock market investing, and their investment styles differ from men's. Among other difference, women investors tend to focus more on long-term security, stability, and lowered risk. They must be doing something right; one research study showed that although single men trade 45 percent more than single women, they earn less on their investments overall.
Additionally, the number of women-owned businesses in the U.S. has more than doubled since the late 1980s, and today women own more than one-third of all U.S. companies, employing some 27 million people in the process. And as more and more women yearn for flexible schedules and decision-making power, a rising class of telecommuters and entrepreneurs is changing how business is conducted. In turn, there will be a greater need for services and products that complement this new work style.
Single women are on the move, as well: 50 percent of the solo-adventure-traveler market is composed of single women (with an average age of 47); it is estimated that women make up two out of every five business travelers in the U.S.; and, according to Young & Rubicam research, 75 percent of never-married women own cars. If in the past, women have received less than exemplary treatment from these industries, the lessons for the future are clear. Leaders in the travel and automotive industries, including Club Med, Ford Motor Company, and Toyota, are listening very carefully, targeting this unapologetically independent group of consumers.
In the 21st century, the "e-tale" will be told by women. The female race to the World Wide Web is a worldwide phenomenon, with women signing up in record numbers in the U.S., Canada, Australia, Finland, Sweden, the Netherlands, Switzerland, the U.K., Japan, and China. Top stops for women on the Web include women-oriented portals, toy retailers, greeting card sites, health sites, and retail discounters. As more women become wired, not only is the "profile" of the average user changing, but women are also changing the architecture of cyberspace, from pages that load quickly to easy-to-navigate, secure shopping sites.
Around the world, solo women are developing an enormous amount of spending power. And, despite their diversity, a global culture of young single females is emerging. From a marketing standpoint, this consumer has three identifiable characteristics: She is info-savvy; she is a relationship-seeker who remains loyal to trusted brands; and she is strongly influenced by her confidants. In targeting this demographic, advertisers are beginning to appeal to single women's aspirations of freedom and independence. Single women respond to advertising messages that respect their intelligence, honor a myriad of lifestyle choices, and affirm their self-esteem and independent spirit.
Intelligence Factory research on "The Single Female Consumer" constitutes the first and broadest aggregation of data on this rising consumer market. This benchmark study explores this high-growth sector both qualitatively and quantitatively, using primary and secondary data and new segmentations of existing data sets. Incorporating the breadth and depth of insight associated with The Intelligence Factory, the researchers relied on the group's network of Trendscouts in Y&R offices around the world. "The Single Female Consumer" also draws upon recent IF research studies, as well as Y&R's esteemed Brand Asset Valuator surveys. It also consolidates, for the first time, primary and secondary data from around the world--including governmental and business reports -- on issues, trends, and events affecting consumer markets.